LG New Energy and Samsung SDI will supply high-voltage battery cells to BMW. This German automaker has selected two South Korean companies as its suppliers for the sixth-generation power batteries in order to accelerate its electrification transformation.

BMW Group announced on the 9th that it has added LG New Energy and Samsung SDI as suppliers of sixth-generation high-voltage battery cells, and signed supply contracts with both companies respectively. Delivery is planned to begin at the end of the 2020s, but the quantity of supplies and the contract amounts have not been disclosed to the public.

BMW's sixth-generation battery is the first time the company has adopted 46-mm cylindrical cells, replacing the previously used square cells. Each battery pack contains 1,000 cylindrical cells with a diameter of 46 mm and a height of 95 mm, resulting in an energy density increase of over 20%. These batteries will be installed in BMW's new generation of electric vehicles—models based on the new generation platform ( Neue Klasse ).

Two manufacturers plan to organize production based on their existing overseas factories: LG New Energy will produce in the United States, while Samsung SDI will produce in Europe, supplying BMW's vehicle factories in their respective regions. LG New Energy is preparing to produce 46-series cylindrical batteries in Arizona; Samsung SDI is currently producing power batteries for the European market in Hungary and is also building a new production line for 46-type cylindrical batteries, with the goal of mass production by 2028.

Industry insiders stated that this order deepens BMW's partnership with South Korean battery manufacturers. Samsung SDI has long been a core partner of BMW, and the two parties signed a fifth-generation power battery supply agreement worth 2.9 billion euros (about 4.4 trillion Korean won) as early as 2019, with a supply period from 2021 to 2031; this new agreement represents additional supplies.

For LG, a new energy company, this is its first large-scale battery supply order with BMW. The company stated during its first-quarter earnings report in April that it had received new orders for over 100 GWh of batteries, and at that time, the market speculated that the customer was BMW. Based on the scale of the order, the value of this contract is estimated to be around 10 trillion Korean won.

Nikolai Martin, a member of the board of directors responsible for procurement and supplier networks at BMW Group, stated: "Diversifying supply sources is at the core of BMW's procurement strategy. We tap into the potential of the global procurement market to enhance product competitiveness, achieve results in various markets, and continue to promote the localization of our entire value chain."

BMW Group's cumulative sales of pure electric vehicles exceeded 2 million in September, ranking first among luxury brands; the cumulative sales of electrified vehicles, including plug-in hybrid models, reached approximately 3.5 million by September.

Responsible Editor: Jiang Xuesi